Edmonton Real Estate Investor: Alberta politics

"Albertans are being set up for higher personal, corporate and resource taxes.

Despite what new premier Rachel Notley says, the province’s finances aren’t really that much worse than the Tory government said. For all the Tories’ faults (and there were many), they didn’t sugar-coat the state of Alberta’s revenue problems.

But by claiming, as Notley did following the first NDP cabinet meeting on Wednesday in Calgary, that “we are starting to find the challenges are a bit bigger than what may have been featured in the Prentice government’s campaign,” Notley is getting ready to abandon her own campaign promises not to raise taxes much, except on the richest Albertans.

If you promised not to raise taxes on 90 per cent of Albertans, but now that you’re safely elected you admit that was never realistic, how do you explain to voters that the 90-percent pledge can’t be kept? Why, of course, you blame the unpopular, outgoing government." JUMP

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May 17th., 2015
Volume 18, Issue 8

Dear Friends and Partners,

It’s been a wild week. The biggest change of course was the NDP’s surprising majority win and Rachel Notely becoming the Premier-elect. The second surprise was the massive snowfall after; a hell-freezing-over type of storm. Alas, this is a democratic win. The question on the minds of big oil, business owners and real estate investors is how will the new government effect business? Will royalties increase, taxes go up, rent control come into place…is the economy grinding to a halt? In reality we don’t yet know. I think that there is a good balance of opposition (Wild Rose and PC at 50%) to temper the direction. Fresh eyes can bring new ideas and progressive change, especially in environmental regulation, and if done right, without hurting the economy.

No matter what the diagnosis, we can manage and thrive as property owners and investors as we adjust to a ‘new game’. One thing is for sure, there will be bargains to be had if you have your buyers hat on; fear and uncertainty always offer a discount. Continuing to focus on quality property in areas with infrastructure in place or committed (read: already funded) such at hospitals, universities, LRT and select areas of the Arena District will fair well.

Strategies to hedge against a recession include reevaluating your portfolio and culling the dogs, CF bleeders or any hard to tenant/manage property. Use the next few months to renovate and sell any dead weight to mitigate negative CF and buffer up a CF fortress to weather a storm or at least inclement weather.

West Edmonton: Jasper Park Legal 4-Unit Cash-flow

Turbo charge your portfolio. This legal 4-unit, 1962 built, RA-7 zoned property is located directly across from school and park in Jasper Park. Near Telus World of Science, Edmonton Zoo, NAIT, Hospital and fast access to downtown and on either the Yellowhead or Whitemud. This property has front entrances to the 4 X1 BD and a parking pad for six cars.

This property was purpose built and is in good condition. It is rare to find a legal 4-pled for this price. Investment capital includes $15K budget slated for further renovations to modernize and improve value and rent-ability. All suites have own laundry. This is a turn-key deal. Excellent access to downtown, transit and parks.

This property comes complete with great tenants making this a totally turn-key property for you. Jasper Place is a mature area that is a desirable for tenants working in the city or attending NAITS west-side campus. HUGE upside potential due to the RA-7 zoning of the building, great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.

Purchase price: $449,000
Total Investment: $108,500
Your Estimated 5 Year Profit $60,697
Your pre-tax Total ROI is 56% or 11% per year

These 4 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!

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Albertan’s wanted a broom, not a hammer and sickle

By Ezra Levant, Special to Financial Post, May 6th, 2015

Canada’s Left is jubilant that the NDP won a majority in Tuesday night’s Alberta election. Fair enough – no-one else has beaten the Progressive Conservatives in 44 years, let alone a fringe socialist party in Canada’s most conservative province. Perhaps the revolution was finally here! It could be. Rachel Notley, the incoming premier, wears a Che Guevara wristwatch. One of her new MLAs, Rod Loyola, publicly praises Hugo Chavez, the late Venezuelan authoritarian. And Alberta’s new First Husband, Lou Arab, is an executive with the labour union, CUPE.

FOLLOW THIS ARTICLE

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Calgary business groups say they look forward to working with NDP government

By Mario Toneguzzi, The Calgary Herald, May 6th, 2015

Calgary business groups say they are looking forward to working with the new majority NDP government in Alberta despite still having some concerns about the party’s platform.
Amber Ruddy, senior policy analyst with the Canadian Federation of Independent Business, said the voters clearly spoke on Tuesday night and now there’s a real opportunity to have small business issues front and centre.

READ MORE HERE

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Assaf & Hyde: The next four years in Alberta don’t necessarily have to be bad for business

By Danny Assaf and Goldy Hyder, National Post, May 8th, 2015

Looking at the chaos in the world today, one could be forgiven for thinking revolutions only happen at the barrel of a gun. The beauty of our democracy is that we can revolt at the ballot box and that’s exactly what happened in Alberta on Tuesday. Even with the most dramatic revolutions, however, there are things that must remain constant for any government: jobs and economic prosperity. All of us, of every political stripe, need to provide for our families and ensure opportunities for our children.

GRAB THIS STORY

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I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.
Your success continues EVERYDAY, let me help you build for tomorrow.

“Since we cannot change reality, let us change the eyes which see reality." - Nikos Kazantzakis

Warm Regards,

Todd and Danielle Millar

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P.S. Stay ahead by checking out Danielle's daily blog at Edmonton Real Estate Investor for all your cutting edge market news and information.

P.P.S. Don’t forget to visit our website and take advantage of the Resource Tools and product section including REIN's #1 real estate books and Quick Start home study sets at a discount. Get your copy of the Canadian Success Stories book and the 2011 Top Ten Investment Towns of Alberta and Ontario.

To everyone's surprise Premier Ed Stelmach announced that he will be stepping down and leaving politics completely this year. Whether you think Mr. Stelmach's departure was premature or long overdue, the bigger debate that lies ahead is finding a capable replacement. Frankly I don't see any candidates emerging that could confidently coax my vote, yet.   

But alas, it is still early as he only made his statement on the 26th. There is still time for a fresh, new candidate to step forward and bring forth new ideas. What Stelmach's sudden departure will initially do is put a chill in the air when it comes to doing business in Alberta and the energy sector, as uncertainty often does.   

In my opinion, if the political rumours are to be believed, a leader who elects to depart before completing his term is admitting weakness and inability in controlling his party as well as governing his province. It is ignoble to bow out, to cop out, due to a lack of competence. It absolutely must be an incredibly difficult job to do, but one in which the challenges should have been weighed prior to enlisting for. At the end of the day, pulling out early without a succession plan in place ultimately shows a level of ignorance and apathy over what is best for Alberta. Of course without ever being in Ed Stelmach's skin I can't truly say for certain.  

What I'd like so see in the new Premier is someone with the confidence and ability to lead, the business acumen to promote, develop and guide the Oil Sands to years of success and the financial savvy to build up Alberta's economic diversity while maintaining and striving for a high standard of living.

  I am optimistic for what this change will bring. I think that Premier Stelmach's heart may have been in the right place. He has made great contributions. Moving forward we must choose a leader with heart, soul, brawn and brains to get us to the next level.

What are your thoughts? There are some polarized opinions and funny insights - like here, here and here. This Calgary Herald Gallery is a good example of the range of reactions.

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth.   Your success continues TODAY, let me help you build upon it.  

"Nobody can go back and start a new beginning, but anyone can start today and make a new ending." -Maria Robinson   Warm

Regards,  
Todd and Danielle Millar

There's a lot going on in 2011. Already the whoppers include mortgages rules changing effective March 2011, stronger and stronger indications of rising interest rates and a new Premier for Alberta - sometime.

So what? There always is a lot going on. The best action is not reaction but positive pro-action (I just made that up- look out Sarah Palin!) In our case we started locking in all our variable rate mortgages, where it made sense. I'm not going negative cashflow for the sake of a little peace of mind. I can ride the variable until maturity and probably pay less negative cash flow in the long run.

We're also re-evaluating our political choices. It's a second look at the political landscape to figure out which way to go.

If it's not one thing it's another you've just got to roll.

Premier Ed Stelmach will not lead his party in the next election. It comes as a shock and will certainly bring about a leadership race in the future. A quick look at the comments on any newsite shows that people are very polarized about his decision to quit. Examples here and here